The Rise Fund is a subsidiary of TPG Growth, a US company that specialises in growth equity and middle-market buyouts.
The Rise Fund made the investment together with Endeavor Catalyst, a co-investment fund that specialises in growth equity investments, and Satya Capital, an independent venture firm with a focus on African business.
The new investors are the latest in a chain of international private equity firms that have been pouring millions of shillings into Cellulant in recent years.
Digital payments service provider Cellulant has sold a Sh4.8 billion stake to US based social impact investment firm The Rise Fund, in a deal billed as one of the largest by a Kenyan fintech company.
The Rise Fund is a subsidiary of TPG Growth, a US company that specialises in growth equity and middle-market buyouts.
The Rise Fund made the investment together with Endeavor Catalyst, a co-investment fund that specialises in growth equity investments, and Satya Capital, an independent venture firm with a focus on African business.
The new investors are the latest in a chain of international private equity firms that have been pouring millions of shillings into Cellulant in recent years.
Cellulant’s list of shareholders includes Velocity Capital Private Equity, Progression Capital Africa Limited and TBL Mirror Fund.
Cellulant says it plans to use the funds to enter two new markets in Africa before the end of the year as well as upgrade its payment infrastructure to suit emerging demands of the market.
The fintech also plans to expand its operations in Nigeria where it is targeting 17 million farmers who have e-wallets on its Agrikore platform -- a block-chain based smart-contracting and marketplace system.
40 million people
“Our company reaches 40 million people across 11 African countries. Though this is a laudable milestone, we cannot rest on our successes when two thirds of Africans do not have access to a bank account,” said Cellulant in a statement.
“We have always wanted to do more for those who are still locked out of the financial system in Africa, despite the mobile-powered financial inclusion revolution across the continent. This capital will help us actualize our plans,” said Cellulant chief executive and co-founder Ken Njoroge.
Cellulant facilitates mobile payments and digital commerce service for enterprises, mobile network operators, financial institutions and their customers.
For instance, the firm’s technology enables customers to make transactions through partner banks USSD short code menu. Businesses can also give Cellulant the mandate to manage a pay bill account on their behalf.
The tech firm launched its operations in Kenya and Nigeria in 2004 and now has operations in nine other countries including Zambia, Ghana, Zimbabwe, Tanzania, Uganda, Botswana, Mozambique, Malawi, and Liberia.
Mr Njoroge and Bolaji Akinboro, the firm’s other chief executive officer, co-founded the company.
“With this new capital and as part of our scaling up strategy, we are leveraging on the growing mobile penetration trend in Africa to broaden our reach and extend our payments ecosystem across the continent,” said Mr Akinboro.
“This will allow us to increase access to payments for the millions of Africans who are still unbanked, despite the financial inclusion revolution.”
First in Africa
The Rise Fund was formed in 2016 and the deal sealed with Cellulant is the first it has undertaken in Africa.
“Across Africa, expanding easy-to-use and low cost mobile banking offers immense potential for impact, and Cellulant is at the leading edge of that work,” said The Rise Fund CEO and co-founder, Bill McGlashan.
“We are excited to invest in African entrepreneurs like Ken and Bolaji to help them grow their businesses and expand their impact on society. Cellulant is a perfect partner for The Rise Fund’s first investment in Africa.”
